U.S. to limit Chinese investment in American tech firms

The tensions, which for weeks have struck fear into the hearts of global investors, add to those sparked by the trade dispute between the U.S. and European Union.

Meanwhile, the Wall Street Journal reported that measures would likely target investments in the United States by any company with at least 25% Chinese ownership, as well as exports of technology by USA firms.

Mattis said in a speech to Naval War College graduates last week that China harbours “long-term designs to rewrite the existing global order”. He said the European Union wants other governments to join the WTO group.

“We are already in contact with Chinese buyers”, said the president of French beef industry group Interbev, Dominique Langlois, who said the aim was to export 30,000 tonnes per year.

In the meantime, expect more tough talk until they reach a compromise. But if nothing is done, “the environment for multilateral trade will vanish”, he warned.

But on this issue they have been driven together by Trump’s increasingly aggressive push to levy tariffs both on rival powers – like China – and also longtime allies like the EU. Chinese officials have repeatedly rejected the USA allegations, accusing Washington of making unilateral and protectionist moves.

Trump on Tuesday once again hit out at countries that had placed tariffs on United States goods, and threatened to impose even more tariffs.

Tariffs on $34 billion of USA goods including agricultural products such as soybeans will take effect from July 6, the Chinese commerce ministry said.

Navarro on Monday afternoon dismissed the market’s struggles as a product of momentum investing and advised that long-term investors will profit from the president’s trade strategies.

“I think that there are very few remaining off ramps for rising tensions”, said China expert Martin Chorzempa of the Peterson Institute for International Economics.

Last Monday, President Donald Trump said he asked the USA trade representative to identify an additional $200 billion worth of Chinese goods for a 10 per cent tariff. Beijing chose to impose 659 American goods with duties in the same 25%.

“China has no intention or ambition to challenge United States global influence”.

China’s Commerce Ministry and Foreign Ministry didn’t immediately respond to requests for comment.

China calls the latest action by the Trump administration “blackmail” and is prepared to up the ante with more retaliatory tariffs. The President justified the move by saying imported metals threatened America’s national security – a justification that countries have used rarely because it can be easily abused.

Chinese Premier Li Keqiang told French Prime Minister Edouard Philippe that Beijing was planning to buy more planes this year and was ready for further talks with France on obtaining Airbus aircraft.

“We hope Mattis can take advantage of this visit to seek maximum common ground with China”, the newspaper said.